Royal Bank of Scotland is not ready to return to the private sector, according
to a damning final report by the Parliamentary Commission on Banking
Standards.

George Osborne is expected to use the report to signal a change of strategy,
agreeing to the cross-party commission’s proposal to hold a quick review
into whether to force RBS to hive underperforming assets into a “bad bank”.

A Treasury-run assessment, which could be completed over the summer, will
reopen questions over how to focus RBS on the UK economy and get rid of the
retail and investment banking operations it still runs overseas.